GBP/JPY bounces lead to bull trap; MACD enters in bearish zone

One more instance of technical supremacy. Yet again it is proven that technical takes care of fundamentals majority of the times. Ever since the pair formed “hanging man” on the monthly chart we’ve been consistently urging for shorts of GBPJPY in the long run.

Adamant bulls would have held faith in prevailing bear trend at least by now, the previous downtrend offered more shorting opportunities, rest all is history right now.

Any immature trader could now contend mentioning that it is mere a fundamental effect due to the geopolitical and economic turmoil that took place between EU and the UK.

Here are the historic evidences of our bearish indications in our previous articles, please refer below weblinks for more reading:

There were plenty of times we kept maintaining our bearish stances in the long run and advocated relevant hedging strategies for these bearish risks, a foreign trader who deployed them in his FX portfolio would have saved huge.

For now, we perceive any rallies as short covering rallies and creating an opportunity for a fresh shorting opportunity.

As of now, still there are no traces of recoveries; instead, it is steaming up with a lot of bearish indications by leading as well as lagging indicators.

RSI (14) and stochastic on both daily and monthly charts have been converging to the on-going slumps (while articulating), momentum in selling would be confirmed with this downward convergence to the dipping prices.

MACD shows bearish crossover and has just entered into zero level which is bearish trajectory as the bears are taking complete control over the rallies to evidence every dip with ease and with huge volumes (see weekly & monthly charts for bear candles with big real body and volumes conformity).

The current prices on both daily and monthly have remained well below DMAs and EMAs, hence it is perceived as on-going downtrend seems to be intact, never buck the major trend is what we could suggest.